MSR investors continue to offer strong bids for both low-coupon and current-coupon assets. Some MSR owners are also adjusting their risk tolerance as volatility in the financial markets has been constant during the Trump administration.

Typically, when interest rates decline, as they did for much of the first quarter, retention rates increase. That wasn’t the case this time.

Federal bank regulators are looking to reduce the capital requirements that apply to mortgage servicing rights and to mortgages held in portfolio. A March proposal is seen as making mortgage lending and servicing somewhat more attractive for banks.

Carrington Mortgage is set to acquire Valon Mortgage, which primarily operates as a subservicer with a focus on Ginnie Mae loans.

As a group, the five largest firms in terms of owned servicing lost market share during the first quarter of 2026. Much of the decline was due to Rocket Mortgage, the largest servicer in the industry. (Includes three data tables.)

As delinquencies rise, servicers will face increasing obligations for advances to MBS investors. Large servicers are expected to be able to handle the pressure while some smaller servicers could face difficulties.

Depository institutions increased their share of the agency servicing market slightly in the first quarter of 2026 as a handful of banks bought GSE MSR in the bulk market. (Includes two data tables.)

A FASB taskforce recommended that accounting practices for mortgage servicing rights should include recapture in valuations.

Two Harbors Investment faced difficulties obtaining shareholder approval for its acquisition by United Wholesale Mortgage after the latter’s stock price declined.

New guidelines would eliminate the threshold-based deduction for mortgage servicing rights and apply a 250% risk weight to the assets.